Quimbee logo
DMCA.com Protection Status
From our private database of 18,300+ case briefs...

Vitex Manufacturing Corp. v. Caribtex Corp.

United States Court of Appeals for the Third Circuit
377 F.2d 795 (1967)



Prior to entering into a contract with Caribtex Corp. (Caribtex) (defendant) to process woolen material, Vitex Manufacturing Corp. (Vitex) (plaintiff), a business located in the Virgin Islands, had closed its fabric processing plant due to a decrease in demand. After entering the contract with Caribtex, Vitex re-opened its plant, rehired its work force and took other steps to prepare itself to perform the contract. However, Caribtex failed to deliver the products which Vitex agreed to process and Vitex sued Caribtex to recover lost profits. The District Court of the Virgin Islands found Caribtex in default and awarded damages in the amount of $21,114. The damages were calculated by subtracting the costs that Vitex would have incurred in processing the woolen materials for Caribtex from the gross profits it would have earned had Caribtex performed. Caribtex objected to the trial court’s calculation of damages at trial. Caribtex appealed, asserting that overhead expenses should have been included in Vitex’s costs, and consequently deducted from the amount of gross profits in calculating the damages award.

Rule of Law


Holding and Reasoning (Staley, C.J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 486,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 486,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 18,300 briefs, keyed to 985 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Questions & Answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial